TCI Explores Shipbuilding Options in Asia, Plans Significant Investments for Growth

TCI, a logistics company, is exploring options for shipbuilding operations in China, Japan, and Korea after a shipyard in Japan cancelled their order for two ships. They are looking to finalize a deal in the second half of the fiscal year. In the meantime, they are also considering purchasing a large second-hand cargo vessel to strengthen their seaway operations immediately, as new ships typically take three years for delivery.

The company had signed a contract with a Japanese shipyard for two container vessels last October, which was cancelled, leading them to reconsider their ocean fleet acquisition plan. TCI plans to allocate ₹75 crore in FY25 for ship acquisition and has a cash balance of about ₹400 crore for expansion and strategic initiatives. The company aims to grow its revenue and profit by 10-15% this year, with a focus on regional business growth and expansion in the Middle East and Sri Lanka.

TCI is also focusing on chemical logistics and anticipates significant growth in this area over the next decade as India integrates into global supply chains. They expect strong improvement in performance post-election and plan to invest ₹375 crore in FY25, with allocations for ship acquisition, new warehouses and offices, trucks, and other assets. Despite market uncertainties due to global conflicts, TCI is confident about maintaining its growth trajectory.

Source .